Statistics NZ Wellington building off-limits after floor pancaked in quake

UPDATE: Statistics New Zealand's decision to review the schedule of data releases after this week's 7.5 magnitude earthquake left its Wellington headquarters unusable for up to a year has highlighted the agency's reliance on the head office.

The quake damaged the 11-year-old building to such an extent that Statistics NZ's staff won't be allowed back in for up to 12 months, and its website and public data sources are out of action, although its Auckland and Christchurch offices remain open.

The agency was scheduled to release the September retail trade survey today, but has put that off until further notice and is reviewing its release calendar.

While that's seen as more of a nuisance to economists who rely on government data, New Zealand Institute of Economic Research's Christina Leung says the agency has too much emphasis on the Wellington office.

"I can't believe that it has all its systems concentrated and are so reliant on Wellington," Ms Leung says.

"Even with the Auckland and Christchurch operations, they're so reliant on Wellington and that's out," Ms Leung said. "It's definitely not ideal."

Statistics NZ has been here before after its major data processing site in Christchurch was damaged in the 2010 and 2011 Canterbury quakes, and the agency delayed some key data after that disaster.

Still, the delays to the release calendar won't be as relevant over the next month with largely second-tier data scheduled for publication.

Bank of New Zealand head of research Stephen Toplis says he is quite relaxed given Statistics NZ will get on top of things eventually and that there hadn't any indication of a hold-up in the major indicators, while ASB Bank chief economist Nick Tuffley expects there will be some short-term disruption and slower releases of some data, but says it will "definitely be a temporary thing."

Last week the Reserve Bank delivered its final monetary policy review of the year and won't update its economic forecasts until February. A spokesman said its economics team works with Statistics NZ, but also uses other sources when forming its view on the economy.

Statistics NZ signed an 18-year lease with CentrePort for the Harbour Quays building during the financial year. CentrePort has suspended operations since the quake, citing damage to buildings and liquefaction in places. Fellow Harbour Quays tenant Bank of New Zealand has been told its Wellington office is "structurally sound" but doesn't anticipate sending staff back into the building this week.

CentrePort's investment property was valued at $47.9 million at the end of June and generated $3.7 million of revenue in the year.

EARLIER:

Statistics New Zealand will put off today's scheduled release of the September quarter retail trade survey and provide a new schedule of upcoming releases after Sunday night's 7.5 magnitude earthquake damaged its Wellington base to the extent that it could be up to a year before it can be reoccupied.

The government statistics agency's office on Wellington's Harbour Quays was closed to its 500 or so staff yesterday as engineers inspected the building, and Statistics NZ has been told it will be up to 12 months before they will be allowed back in, it said in a statement. The agency was due to release the retail trade survey today but has put that off until further notice, and the current calendar is under review.

"Statistics NZ has been told by engineers that it will be several months, up to a year, before it can be reoccupied," a spokesman said in an emailed statement."We are reviewing the current calendar of statistics releases and will update people when we have certainty about a new schedule."

The agency faced similar woes in 2011 when the Canterbury earthquakes severely damaged its Christchurch office and delayed the release of top-tier data. Bank of New Zealand's Wellington office also suffered damage, and the lender said it was working with its landlord to figure out how bad it was.

Statistics NZ's Wellington office is owned by CentrePort, which yesterday suspended operations until further notice after the quake damaged buildings on the port and caused liquefaction in places.

The government department said its Auckland and Christchurch offices are still open, though its website, and public data sources – Infoshare and nzdotstat – are out of action.

The agency will provide an update when it has certainty about a new data schedule.

(BusinessDesk)